CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-2 Journalizing Buying Insurance, Buying on Account, and Paying on Account 1.Journalize transactions correctly.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Understanding the Accounting Cycle for a Service Business 2 LESSON 3-2 Objectives : 36 Use source documents to journalize transactions. 38 Prepare customer invoices for a service business.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 3 Objectives Define accounting terms related to journalizing transactions. Identify accounting concepts and practices related to journalizing transactions. Record transactions to set up a business in a five-column journal. Record transactions to buy insurance for cash and supplies on account in a five-column journal. Record transactions that affect owner’s equity and receiving cash on account in a five-column journal. Prove and rule a five-column journal and prove cash. 3 LESSON 3-2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 3-2 PAID CASH FOR INSURANCE page 63 August 4. Paid cash for insurance, $1, Check No Write the date in the Date column. 2.Record the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3.Write the credit amount in the Cash Credit column. 4. Write the source document number in the Doc. No. column

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 3-2 BOUGHT SUPPLIES ON ACCOUNT page 64 August 7. Bought supplies on account from Supply Depot, $ Memorandum No Write the date in the Date column. 2.Record the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3.Record the credit amount on the next line in the General Credit column. Write the title of the account in the Account Title column. 4.Write the source document number in the Doc. No. column on the first line of the entry

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 3-2 PAID CASH ON ACCOUNT page 65 August 11. Paid cash on account to Supply Depot, $ Check No Write the date in the Date column. 2.Record the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3.Write the credit amount in the Cash Credit column. 4.Write the source document number in the Doc. No. column

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Exit Ticket for Chapter Which journal columns are used to record paying cash for insurance? 2.Which journal columns are used to record buying supplies on account? 3.Which journal columns are used to record paying cash on account? 7 LESSON 3-2 In a Word Document, SaveAS: Chapter3-2AYUYourName Drop a copy in my InBox today before you leave!

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 3-2 Assignments Complete on Aplia Work Together 3-2 On Your Own 3-2 Application Problem LESSON 3-2